UBS raises CarMax stock price target to $62 on turnaround progress
UBS raised CarMax's (KMX) price target to $62, citing Q2 FY2027 results with 13% used vehicle sales growth and gross profit per unit of $2,105. The company updated its full-year outlook and resumed share buybacks. CarMax's Q2 earnings of $1.16 per share on $7.88B revenue beat estimates. BofA Securities also raised its target to $50, maintaining an Underperform rating.
How this was made
The 30-second read
Why it matters
Analyst upgrades and a resumed share buyback program suggest near‑term price appreciation.
Market read
Earnings beat and analyst upgrades create a bullish catalyst for KMX.
What to watch
Potential inventory buildup and macro‑headwinds from higher rates could affect future sales.
Background
CarMax disclosed Q2 FY2027 results with revenue of $7.88 B and EPS of $1.16, surpassing estimates, prompting analyst target raises.
Ticker impact
UBS raised its price target on CarMax to $62 and BofA raised its target to $50 after CarMax reported Q2 FY2027 earnings that beat expectations.
likely upward pressure as the market prices in the higher targets and earnings beat.
Both UBS and BofA increased targets on fresh earnings beat, indicating improved valuation expectations.
Market effects
Positive for used‑car retail sector as earnings beat may lift peers.
U.S. consumer discretionary outlook strengthened.
Limited to U.S. market; no broader macro effect.
Counterpoint
The earnings beat may be temporary; margin pressure could limit upside.
Key entities
- companyCarMax Inc.
U.S. used‑car retailer reporting earnings beat.
- analystUBS
Raised price target to $62.
- analystBofA Securities
Raised price target to $50.
